Kangwon Land (035250) Q1 2026 earnings summary

Executive summary

• Q1 2026 consolidated revenue rose 3.4% YoY to ₩378,923,908,931; operating income fell 7.2% to ₩68,914,600,215 and net income declined 46.8% to ₩39,663,894,251.

• Casino operations remained the dominant revenue source, accounting for 85.54% of revenue; gaming sales rose 4.3% while non-gaming sales declined 1.8%.

• Operating cash flow was negative ₩114,420,882,384, versus positive ₩9,272,854,576 a year earlier.

Financial highlights

• Gross profit was ₩102,709,585,428, down from ₩103,010,055,706; COGS and SG&A totaled ₩310.0bn, up 6.2% YoY.

• Income before tax decreased 44.5% YoY to KRW 53.9bn; corporate tax expense fell 36.6% to KRW 14.2bn.

• Basic and diluted EPS were ₩200, down from ₩372; profit attributable to parent owners was ₩39,665,261,378.

• Finance income was ₩16,663,617,624, including ₩12,435,594,362 in fair-value gains; finance costs were ₩12,434,127,427, including ₩11,666,701,526 in fair-value losses.

• Operating margin was 18.2% versus 20.3% in 1Q25; net margin was 10.5% versus 20.4%.

Segment performance

• Gaming sales were KRW 330.4bn, up 4.3% YoY; gross gaming revenue rose 4.5% to KRW 360.0bn.

• Mass table sales fell 0.6% to KRW 159.4bn; membership club sales rose 27.6% to KRW 62.1bn and slot sales increased 2.4% to KRW 138.5bn.

• Casino drop increased 3.2% to KRW 1,500.8bn; casino visitors rose 0.8% to 625,916, including 7,003 foreign visitors, up 4.1%.

• Non-gaming sales declined 1.8% to KRW 48.6bn; hotel sales rose 4.4% to KRW 23.7bn, while ski sales fell 8.0% to KRW 12.6bn.

• Condo revenue was ₩11,052,588,938 versus ₩11,163,999,019; Water World revenue was ₩959,134,548 versus ₩1,239,372,207 YoY.